Aside from the deaths and obvious health deterioration caused by the coronavirus, the global economy has experienced a severe economic backlash. The New York Stock Exchange has had some of its worst days in decades and the Federal Reserve has slashed rates. It initially cut back interest rates by a half percent. A week later, it was cut to almost zero.
Dr. William Darrow from Florida International University believes the reason the United States, in particular, seems to be at a loss of solutions is that the virus is unlike anything experts have ever seen.
“It is called novel coronavirus,” he said.
Supply chain expert Craig Austin said there’s a possibility Chinese manufacturing will not be able to catch up with the demands of the world after the crisis is over.
“There’s a suspicion that old inventory might go before they’re able to produce new inventory,” said Austin.
Another FIU expert, Sebastian Garcia Dastugue, believes this backlash could be a consequence of the United States’ inability to bring Chinese labor to this country. “The human race has chosen China as the manufacturing center of the world,” he said.
This has led to the world having very few, but highly concentrated areas of manufacturing — which were and remain highly vulnerable to the pandemic.